NEW NORMAL

 Two critical decisions came recently, one by the honorable Supreme Court and the other by the government for enhancing growth. The government took some bold decisions to tame inflation and enhance economic activity like reducing duty on petro products like petrol and diesel. Some state governments had also reduced the state VAT on the same to take off the pressure on common citizens. The government had imposed a ban on the export of wheat with riders giving only those orders to be completed which had been taken before the ban. The ban on the export of iron ore and other steel products which are the raw materials for specialty steel products for other countries. Other decisions like reducing import duty on plastic raw materials are required for major manufacturers of many products. The decision will impact inflation in the coming week. The direction required for the future expansion of economic growth is the same as that which is currently applicable. The other decision by the cour...

 Two nations are facing food problems in our neighborhoods. Our government just banned exports of wheat with immediate effect. Some time back we opened up the export of wheat.  The world is facing a huge deficit of wheat due to the Russia Ukraine war and unnatural heatwave in March and April this year. The production of wheat is barely up to last year. The food security for our own citizens will be under strain. But this year our farmers got a good price for their produce. Which will help them to meet their expenses with confidence for the next sowing season. The war has an effect on the world economy as everywhere we are seeing the inflation is above the comfort level of respective central banks. The cost of food is reaching a level that is unbearable for citizens worldwide. We have a comfortable storage level (each commodity) but the price rise is very high and spontaneous.  This is an opportunity for us to improve the level of production and its storage. Right now,...

 This week we saw the biggest fundraising by LIC of India with maximum participation of retail investors.  The best thing that happened in this is the first time 100%  anchor investment was done by an Indian entity( SBI Group ). The fundraising gave us an opportunity that was best used by all of us. It shows our confidence in our own enterprises and wealth creation for us,  this may be the first and only case in recent times, but going forward it will reduce our dependence on foreign money, so keeping the benefit within our country. The LIC is the biggest financial institution, with interest in different segments of finance like housing finance, mutual fund, and banking( IDBI Bank holding will be retained by LIC as per their statement). Nowadays retail investors are coming with maturity for holding and creating wealth for themselves. They are keeping their holding in a downward cycle too, so they are making sure of the stability of the market. Until now, domestic fun...

 So, the wait is over, and the rates hike by the RBI has just been announced. The repo rate and cash reserve ratio rates had been increased by 40 & 50 bps. The move is on the expected line, in the last two and three months banks have increased deposit rates and now MCLR  will be increased. The headline rates for home loans and other products will increase in the coming months.  As headline inflation has reached 7.5%, it is expected that it will not reduce in a short period as war is going on with no clue when it will end. Crude and other commodities are going through an upward price cycle. Global supply is getting disturbed due to war and lockdown in China. After the first lockdown in our country, we decided to make our nation self-sufficient in each aspect as our market is huge. The market is anticipating the move in the last  MPC meeting of the RBI. Now, the contrast picture is coming from our economy, the PMI index for goods and services is highest in recent t...

 So the corona is coming back again the fourth time, some expect it will peak by in around June. The recent news published in daily and periodicals is showing the resilience of the economy. One small piece of news was given on the last page of a leading daily, that number of small  transactions done by rural folks digitally is nearly 42% of total transactions. The volumes increasing day by day with the net value of transactions is increasing, here one major market for different goods and services is in making with demands for the same increasing. The money transaction by this mode is making money with the trail. The money transferred by the government and now the purchase of commodities make the money trail with a realization for farmers and other rural folks. The ongoing season of wheat procurement is good for farmers as they are getting money on spot with higher than MSP with lifting from fields itself. The demand for other products and services is increasing for example...

 Indeed inflation started showing its effect on the normal life of each and everyone. The cost of crude is still holding above the level of $100 per barrel.  As we purchase crude on daily basis from the open market,  and we receive crude with a lag of around two weeks from the date of purchase The oil cartel is not increasing crude production to reduce the price, the net effect on us is that we are feeling, our day-to-day budget is missed every day or our expenses are not as per plan. This year procurement of wheat is not going to be at the level which is it used to be. The international price of wheat and its demand is soaring due to the war between Russia & Ukraine. The main source of wheat is engaged in war. The farmers are getting higher prices with the spot lifting of wheat is giving the value for money to farmers. The net income for farmers is going to increase with on-spot payments from private players and traders. The IMF just reduced the growth projection for...

 A brand new financial year started with a big bang. The series of good news still pouring in even after inflation is making headlines. Just concluded the week we all celebrated  CHAITRA NAVRATRI & SHRI RAM NAVAMI. It is said that well planned is half done, well-executed means 100%  success. Whatever result we ate getting is well planned and executed since 2014, some decisions were taken prior to 2014 but their execution is done by the present regime. We know that the assets monetization plan for 22-26, had a list of projects for monetization with the final target of   3L Cr. The present year target was somewhat 88000 Cr., but the government got its work done and raised around 96000 Cr. The transaction has fairly different classes of assets, only railway assets have not been monetized, above said, indicates that we will get the required money for other development work both social and development projects. The returns that which acquirer will get are fairly ...